Page 1 of 90
CAIB 4 EXAM AND PRACTICE EXAM NEWEST 2025
TEST BANK| COMPLETE 350 REAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) GRADED A+| CAIB 4 ACTUAL EXAM TEST
BANK (BRAND NEW!!)
What is a SWOT Analysis? - ANSWER -Matching the brokerage's
internal strengths and weaknesses to the environmental opportunities
and threats.
What is a SMART Goal? - ANSWER -Specific
Measurable
Action-Oriented
Realistic
Timely
What are the 3 key steps to implementing the plan successfully? -
ANSWER -1. Controlling implementation
2. Linking budgets to strategies, objectives, and goals
3. Motivating for implementation
What are the 2 major tools used to control implementation? - ANSWER
-Implementation Program
pg. 1
,Page 2 of 90
--> Translates the plan into specific activities. Will outline who is
responsible and what resources are required.
Progress Report
--> Must monitor and evaluate the plan objectively and effectively. Must
take corrective action when necessary.
What is the purpose of a budget? - ANSWER -A budget is the best
financial planning tool used to achieve the plan. Budgets force
management to forecast revenues and expenses, yielding a focus on
profitability.
What are the 3 elements to organizing effectively? - ANSWER -1.
Creating an organizational structure
--> The skeleton upon which the brokerage grows and interacts.
2. Defining Employee Relationships
-->The flow of authority and responsibility must be clearly defined to
avoid confusion.
3. Establishing position descriptions
--> All positions should have a job description which clearly outlines
responsibility and authority. They contain things like title, purpose,
responsibilities, and scope of position.
What are the 3 basic forms of organizational structure? - ANSWER -1.
Line Organization
pg. 2
,Page 3 of 90
2. Functional Organization
3. Line and Staff Organization
What are 3 advantages of line organization? - ANSWER -1. Simplicity
2. Clear delegation of authority
3. Quick decision making
Describe Line Organization - ANSWER -Authority is concentrated in
those managers who are directly responsible for achieving the
brokerage's goals. Authority flows down and responsibility flows up.
Best suited for smaller brokerages.
What are 3 disadvantages of line organization? - ANSWER -1. Line
managers must be fully knowledgeable in a wide range of areas in order
to be able to make decisions.
2. Power is concentrated at the top because senior management must be
involved in all decisions.
3. It limits the growth and development of employees by stifling
innovation.
Describe Functional Organization - ANSWER -In functional
organization, the operation becomes departmentalized. Departments are
headed by specialists who have authority over their specific area of
operation. AKA "Matrix system of management".
pg. 3
, Page 4 of 90
Most brokerages find this to be an extremely difficult form to implement
properly.
What are 2 advantages of functional organization? - ANSWER -1.
Provides employees with expert advice
2. Decisions are made by a management specialist
What are 3 disadvantages of functional organization? - ANSWER -1.
Employees will have more than one boss, so that in areas of overlapping
authority, there may be inconsistent instructions.
2. When a decision is required that does not firmly belong to any one
manager, decision-making can be slow. Employees may be bounced
around from one manager to another without a decision being made.
3. When there are too many managers giving instructions, employees are
frequently distracted from their primary roles of serving their clients.
Describe Line & Staff Organization - ANSWER -This form combines
the strengths of both the line and functional forms of organization and is
best suited for larger organizations. In this structure, the sales, service,
and financial management functions of the brokerage are treated as line
management functions.
What are 3 advantages of line and staff organization? - ANSWER -1.
Areas of authority and responsibility are clearly defined.
2. As each employee has a line manager, decisions can be made quickly.
Expert advice is readily available to line managers when they need it.
pg. 4
CAIB 4 EXAM AND PRACTICE EXAM NEWEST 2025
TEST BANK| COMPLETE 350 REAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) GRADED A+| CAIB 4 ACTUAL EXAM TEST
BANK (BRAND NEW!!)
What is a SWOT Analysis? - ANSWER -Matching the brokerage's
internal strengths and weaknesses to the environmental opportunities
and threats.
What is a SMART Goal? - ANSWER -Specific
Measurable
Action-Oriented
Realistic
Timely
What are the 3 key steps to implementing the plan successfully? -
ANSWER -1. Controlling implementation
2. Linking budgets to strategies, objectives, and goals
3. Motivating for implementation
What are the 2 major tools used to control implementation? - ANSWER
-Implementation Program
pg. 1
,Page 2 of 90
--> Translates the plan into specific activities. Will outline who is
responsible and what resources are required.
Progress Report
--> Must monitor and evaluate the plan objectively and effectively. Must
take corrective action when necessary.
What is the purpose of a budget? - ANSWER -A budget is the best
financial planning tool used to achieve the plan. Budgets force
management to forecast revenues and expenses, yielding a focus on
profitability.
What are the 3 elements to organizing effectively? - ANSWER -1.
Creating an organizational structure
--> The skeleton upon which the brokerage grows and interacts.
2. Defining Employee Relationships
-->The flow of authority and responsibility must be clearly defined to
avoid confusion.
3. Establishing position descriptions
--> All positions should have a job description which clearly outlines
responsibility and authority. They contain things like title, purpose,
responsibilities, and scope of position.
What are the 3 basic forms of organizational structure? - ANSWER -1.
Line Organization
pg. 2
,Page 3 of 90
2. Functional Organization
3. Line and Staff Organization
What are 3 advantages of line organization? - ANSWER -1. Simplicity
2. Clear delegation of authority
3. Quick decision making
Describe Line Organization - ANSWER -Authority is concentrated in
those managers who are directly responsible for achieving the
brokerage's goals. Authority flows down and responsibility flows up.
Best suited for smaller brokerages.
What are 3 disadvantages of line organization? - ANSWER -1. Line
managers must be fully knowledgeable in a wide range of areas in order
to be able to make decisions.
2. Power is concentrated at the top because senior management must be
involved in all decisions.
3. It limits the growth and development of employees by stifling
innovation.
Describe Functional Organization - ANSWER -In functional
organization, the operation becomes departmentalized. Departments are
headed by specialists who have authority over their specific area of
operation. AKA "Matrix system of management".
pg. 3
, Page 4 of 90
Most brokerages find this to be an extremely difficult form to implement
properly.
What are 2 advantages of functional organization? - ANSWER -1.
Provides employees with expert advice
2. Decisions are made by a management specialist
What are 3 disadvantages of functional organization? - ANSWER -1.
Employees will have more than one boss, so that in areas of overlapping
authority, there may be inconsistent instructions.
2. When a decision is required that does not firmly belong to any one
manager, decision-making can be slow. Employees may be bounced
around from one manager to another without a decision being made.
3. When there are too many managers giving instructions, employees are
frequently distracted from their primary roles of serving their clients.
Describe Line & Staff Organization - ANSWER -This form combines
the strengths of both the line and functional forms of organization and is
best suited for larger organizations. In this structure, the sales, service,
and financial management functions of the brokerage are treated as line
management functions.
What are 3 advantages of line and staff organization? - ANSWER -1.
Areas of authority and responsibility are clearly defined.
2. As each employee has a line manager, decisions can be made quickly.
Expert advice is readily available to line managers when they need it.
pg. 4
